Suppose that the exchange rate between the U.S.dollar and the Mexican peso is 1 peso = $0.11.If the U.S.dollar price per Mexican peso changes to 1 peso =$0.10,the peso is said to have __________ and the dollar to have __________.
A) depreciated; appreciated
B) appreciated; appreciated
C) appreciated; depreciated
D) depreciated; depreciated

Question

Quizplus · Accepted Answer

If the U.S. dollar price per Mexican peso changes from 1 peso = $0.11 to 1 peso = $0.10, it means that the Mexican peso has lost value compared to the U.S. dollar. This is known as depreciation of the peso. Conversely, the U.S. dollar has gained value relative to the peso, which is known as appreciation. Therefore, the correct answer is A) depreciated; appreciated.

Suppose That the Exchange Rate Between the U